The Largest Proportion of M1 Is Made Up of

question 15

Multiple Choice

The largest proportion of M1 is made up of

• A)currency.
• B)checking account deposits.
• C)traveler's checks.
• D)savings account deposits.
• E)time deposits.

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Definitions:

Product Differentiation

This is a strategy where companies distinguish their products from those of competitors on bases such as quality, design, or customer service.

Product Differentiation

A marketing strategy that businesses use to distinguish their products from similar offerings, through features, branding, quality, or other attributes.

Excess Capacity

The situation in which a firm is producing at a lower scale of output than it has been designed for, typically because of declining demand.

Monopolistically Competitive Firms

Monopolistically competitive firms operate in a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and price setting.